The Importance of Premium vs. Discount Zones in Smart Money Trading 🏦📈

Institutions buy at discount and sell at premium — this concept alone filters out most bad trades. How to Identify Premium & Discount Zones: Use the 50% equilibrium of a major swing. Above 50% → Premium Zone (Look For Sells) Below 50% → Discount Zone (Look For Buys) Why It Works: Price gravitates around equilibrium. Institutions wait for price to come to an “unfair zone” before executing high-volume trades. Practical Example: Swing low: ₹380 Swing high: ₹460 Midpoint = ₹420 Price below ₹420 → discounted → buy setups Price above ₹420 → premium → sell setups Learning: Avoid entries in the middle. Trade only at extremes where institutions act decisively.